GUJARAT OPERATIONAL CREDITORS ASSOCIATION Vs. LAKSHMI NIWAS MITTAL

JUDGEMENT

(1.) The present Criminal Misc. Application (for contempt) has been filed by Gujarat Operational Creditors Association under Sec. 15 of the Contempt of Court's Act read with Article 215 of the Constitution of India for the following prayers:

(2.) It is the case of the applicant as factually submitted by Mr.Deepak Khosla learned advocate for the applicant that in the facts of the present case, the respondents have obtained the order from the NCLT on 8/3/2019 by fraud. Factually, it is the case of the applicant that ESSAR Steel India Ltd. ('ESIL' for short) was placed into insolvency resolution by NCLT (Ahmedabad) vide its order dtd. 2/8/2017. The successful resolution applicant was Arcelor Mittal India Pvt. Ltd. (respondent No.5) who submitted a resolution plan that was approved by the NCLT vide its order dtd. 8/3/2019. The order was challenged before the NCLAT which with some modification approved a resolution plan by a judgement dtd. 4/7/2019. Thereafter the judgment was taken before the Supreme Court and the Supreme Court in its further notification approved the resolution plan vide its judgement dtd. 15/11/2019. It is the case of the applicant that in terms of the judgement dtd. 15/11/2019, operational creditors of the ESIL having claimed upto Rs.1.00 crore were to be paid in full and people having claims above Rs.1.00 crore would be paid only 20.50% of their total claims. It is the case of the petitioner no.1 that he has been paid 20.50%.

(3.) Mr.Deepak Khosla learned counsel for the applicant would submit that the applicants are "operational creditors" who have been deprived of their claim to the extent of 79.50% as a result of the respondents having carried out the entire resolution process by subterfuge and fraud.